Close
x
  • SMC open account icon Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c
  • SENSEX Aug 04 2020 12:00
    37,687.91 +748.31 ( +2.03%)
  • NIFTY Aug 04 2020 12:00
    11,095.25 +203.65 ( +1.87%)
  • SENSEX Aug 04 2020 12:00
    37,687.91 +748.31 ( +2.03%)
  • NIFTY Aug 04 2020 12:00
    11,095.25 +203.65 ( +1.87%)
  • Nasdaq Aug 04 2020 04:30
    10,902.80 +157.53 ( +1.47%)
  • DJIA Aug 04 2020 04:30
    26,664.40 +236.08 ( +0.89%)
  • S&P 500 Aug 04 2020 04:30
    3,294.61 +23.49 ( +0.72%)
  • Hang Seng Aug 04 2020 02:10
    24,946.63 +488.50 ( +2.00%)
  • Crude Oil Aug 04 2020 10:41
    3,115.00 +12.00 ( +0.39%)
  • Gold Aug 04 2020 10:32
    54,560.00 +563.00 ( +1.04%)
  • Silver Aug 04 2020 10:41
    69,380.00 +3,632.00 ( +5.52%)
  • Copper Aug 04 2020 10:41
    508.15 -1.95 (-0.38%)
  • Pound / Rupee Dec 23 2016 22:30
    97.69 -0.20 (-0.21%)
  • Dollar / Rupee Dec 23 2016 22:30
    74.66 +0.04 ( +0.06%)
  • Euro / Rupee Dec 23 2016 22:30
    87.92 -0.40 (-0.45%)
  • Yen / Rupee Dec 23 2016 22:30
    0.70 -0.01 (-0.72%)

M M Forgings Ltd

BSE Code : 522241 | NSE Symbol : MMFL | ISIN:INE227C01017| SECTOR: - |

NSE BSE
 
SMC up arrow

196.05

8.95 (4.78%) Volume 280564

04-Aug-2020 EOD

Prev. Close

187.10

Open Price

187.15

Bid Price (QTY)

196.05(218)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 198.00 - 185.80

52 wk High/Low 470.10 - 150.05

Key Stats

MARKET CAP (RS CR) 472.68
P/E 18.92
BOOK VALUE (RS) 194.8613136
DIV (%) 50
MARKET LOT 1
EPS (TTM) 10.35
PRICE/BOOK 1.00481720246394
DIV YIELD.(%) 2.55
FACE VALUE (RS) 10
DELIVERABLES (%) 82.13
4

News & Announcements

30-Jul-2020

M M Forgings standalone net profit declines 62.67% in the March 2020 quarter

30-Jul-2020

M M Forgings reports standalone net loss of Rs 4.95 crore in the June 2020 quarter

30-Jul-2020

M M Forgings consolidated net profit declines 81.06% in the March 2020 quarter

30-Jul-2020

M M Forgings reports consolidated net loss of Rs 7.98 crore in the June 2020 quarter

21-Jul-2020

MM Forgings to table results

09-Mar-2020

Board of MM Forgings recommends interim dividend

04-Mar-2020

MM Forgings to conduct board meeting

04-Feb-2020

MM Forgings to discuss results

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Aditya Forge Ltd 522150
AIA Engineering Ltd 532683 AIAENG
Akar Auto Industries Ltd 530621
Alexcon Roamcast Ltd 507933
Anup Malleables Ltd 506087
Baroda Alloys Castings Ltd 513331
BCL Forgings Ltd 506093
Beekay Engineering & Castings Ltd 40646
Besco Ltd 530447
Bhagwati Autocast Ltd 504646
Bharat Forge Ltd 500493 BHARATFORG
Bhawana Steel Cast Ltd 513393
Captain Technocast Ltd 540652
Carnation Industries Ltd 530609
Chendur Forge Exports Ltd (Merged) 522155
Continental Forgings Ltd 513387
Creative Castings Ltd 539527
Dekson Castings Ltd 780006
Dynamatic Forgings India Ltd 513168
EL Forge Ltd 531144 ELFORGE
Electrosteel Castings Ltd 500128 ELECTCAST
Esenes Forgings Ltd 531143
Ganesh Foundry & Castings Ltd 513448
Ganga Forging Ltd 535094 GANGAFORGE
Garg Forgings & Castings Ltd 530857
Gaylord Industries Ltd 531985
Gontermann Peiper (India) Ltd 504701 GONTERPEIP
Gujarat Concast Ltd 513490
Gujarat Metal Cast Industries Ltd 40371
Harig Crankshafts Ltd 500178 HARIGCRANK
HGI Industries Ltd 40011
Hilton Metal Forging Ltd 532847 HILTON
Hinduja Foundries Ltd(Merged) 505982 HINDUJAFO
Hindustan Tools & Forgings Ltd 526037
Investment & Precision Castings Ltd 504786
J G Foundry Ltd 513731
Jalan Forgings Ltd 513347 JALANFORG
Janzen Castmetals Ltd 531245
Jayaswal Neco Industries Ltd 522285 JAYNECOIND
Jayaswals Neco Ltd (Merged) 523674 JAYASWLNEC
JMP Castings Ltd 531159
Kalyani Forge Ltd 513509 KALYANIFRG
Kalyani Thermal Systems Ltd 40178
Kavini Ispat Ltd 513494
KIC Metaliks Ltd 513693
Krishna Engineering Works Ltd 522173 KRISHNAENG
LGB Forge Ltd 533007 LGBFORGE
Magna Eletrocasting Ltd 517449
Mahindra CIE Automotive Ltd 532756 MAHINDCIE
Metalyst Forgings Ltd 513335 METALFORGE
Micro Forge (India) Ltd 522298
Mithila Steel Industries Ltd 513564
Munis Forge Ltd 532079
Nagpur Alloy Castings Ltd (Merged) 513020 NAGPURALOY
National Fittings Ltd 531289
Nelcast Ltd 532864 NELCAST
Nitin Castings Ltd 508875
Palco Metals Ltd 539121
Pan Auto Ltd 513634
Patheja Forgings & Auto Parts Manufacturers Ltd 500326 PATHEJAFOR
Poojawestern Metaliks Ltd 540727
Porwal Auto Components Ltd 532933
Pradeep Metals Ltd 513532
PTC Industries Ltd 539006
Rajasthan Udyogs & Tools Ltd 530349
Rajesh Malleables Ltd 513630
Rajkumar Forge Ltd 513369
Ramkrishna Forgings Ltd 532527 RKFORGE
Ravi Hi-Tech Ltd 523469
Sandeep Industries Ltd 522138
Sanghvi Forging & Engineering Ltd 533411 SANGHVIFOR
Secals Ltd 505823 SECALS
Shivaji Works Ltd (Merged) 504926 SHIVAJWORK
Shree Ganesh Forgings Ltd 532643 SGFL
Simplex Castings Ltd 513472 SIMPLEXCAS
Sivanandha Steels Ltd 40111
Smelters India Ltd 513623
Smiths & Founders (India) Ltd 513418
Sri Raamakrishna Steels Industries Ltd (Wound-up) 40133
Steelcast Ltd 513517
Synergy Green Industries Ltd 541929
Taparia Tools Ltd 505685
Tapuriah Steels Ltd 513328
Tayo Rolls Ltd 504961 TATAYODOGA
Techno Forge Ltd 522142
Tirupati Forge Ltd 535021 TIRUPATIFL
Titagarh Steels Ltd(merged) 500416 TITAGRSTEL
Uni Abex Alloy Products Ltd 504605
Unique Valves Pvt Ltd 40189
Universal Autofoundry Ltd 539314
Vipras Corporation Ltd 522106
Viraj Forgings Ltd(merged) 532088
Vishal Malleables Ltd 505930
Vybra Automet Ltd 520003

Share Holding

Category No. of shares Percentage
Total Foreign 73018 0.30
Total Institutions 5273191 21.84
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 0 0.00
Total Promoters 13599890 56.34
Total Public & others 5194701 21.52
Total 24140800 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About M M Forgings Ltd

Incorporated in 1946 Madras Motors Pvt Ltd, the company went public in 1975. Originally dealing in imported motorcycles, it later diversified to establish steel forging plants. The company changed to its present name, M M Forgings on 1 Apr.'93. It was promoted by S E Krishnan and S R Subramanian. The company manufactures carbon and alloy steel forgings -- with individual forging pieces weighing between 15 kg and 60 kg -- at its two forging units at Singampunari, Madurai district, and Viralimalai, Trichy district, (combined capacity : 15,000 tpa) both in Tamilnadu. The company's products form important inputs for various critical components in the automobile, tractor, earth-moving, power, material handling, oil, railway and core engineering industries. The company's clientele includes Ashok Leyland, BEML, BHEL, Audco Valves and Tractor Engineers. During 1994-95, the company has been accredited with the ISO 9002 certificate. The technical collaboration with Tokai Corporation of Japan has enabled the company to improve its quality and productivity. During 2001, the company has increased its installed capacity of steel forgings from 15000 tpa to 20000 tpa. The technology collaboration with Tokai Corporation of Japan has enabled the company to improve its quality and productivity. The company has completed 2 Wind farm in Muppandal and the same is expected to generated 6 Million KWHr of power each year. In 2002 the company has merged its wholly owned subsidiary viz Gears India Madaras Ltd, The production capacity of Steel Forgings is being increased from 20000 tonnes to 26500 tonnes and this is under process at the end of the financial year 2003-04.Machining capacity has also been substantially increased in line with changing customer demand.

M M Forgings Ltd Chairman Speech

M M Forgings Ltd Company History

Incorporated in 1946 Madras Motors Pvt Ltd, the company went public in 1975. Originally dealing in imported motorcycles, it later diversified to establish steel forging plants. The company changed to its present name, M M Forgings on 1 Apr.'93. It was promoted by S E Krishnan and S R Subramanian. The company manufactures carbon and alloy steel forgings -- with individual forging pieces weighing between 15 kg and 60 kg -- at its two forging units at Singampunari, Madurai district, and Viralimalai, Trichy district, (combined capacity : 15,000 tpa) both in Tamilnadu. The company's products form important inputs for various critical components in the automobile, tractor, earth-moving, power, material handling, oil, railway and core engineering industries. The company's clientele includes Ashok Leyland, BEML, BHEL, Audco Valves and Tractor Engineers. During 1994-95, the company has been accredited with the ISO 9002 certificate. The technical collaboration with Tokai Corporation of Japan has enabled the company to improve its quality and productivity. During 2001, the company has increased its installed capacity of steel forgings from 15000 tpa to 20000 tpa. The technology collaboration with Tokai Corporation of Japan has enabled the company to improve its quality and productivity. The company has completed 2 Wind farm in Muppandal and the same is expected to generated 6 Million KWHr of power each year. In 2002 the company has merged its wholly owned subsidiary viz Gears India Madaras Ltd, The production capacity of Steel Forgings is being increased from 20000 tonnes to 26500 tonnes and this is under process at the end of the financial year 2003-04.Machining capacity has also been substantially increased in line with changing customer demand.

M M Forgings Ltd Directors Reports

1. FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2019

( र in Lakhs)
2018-19 2017-18
1.1. Forging Sales 88,736.91 60,091.09
1.2. Profit before exceptional items/extraordinary items and Tax 10,854.10 8,191.36
1.3 Exceptional/Extraordinary Items 2.41 17.21
1.4 Profit Before Tax 10,856.51 8,208.57
1.5 Tax
For current year 2,192.49 1,500.00
Relating to previous years - -
Deferred Tax 522.03 (323.35)
MAT credit entitlement 6.95 181.19
2,721.47 1,357.84
Profit After Tax 8,135.04 6,850.73

The Directors commend the employees for their commitment and contribution.

2. DIVIDEND AND FINANCIAL RESULTS:
( र in Lakhs)
2018-19 2017-18
2.1. Profit After Tax 8,135.04 6,850.56
2.2. Balance in P & L Account 292.62 244.72
2.3. Profit available for appropriation 8,427.66 7,095.48
2.4. Transfer to General Reserve 6,700.00 5,400.00
2.5. Interim Dividend paid 708.97 701.43
2.6 Proposed Dividend 708.97 701.43
2.7. Balance carried forward 309.72 292.62

On 28 May 2019 the Directors declared a second interim dividend of 25 %, र 2.5/ per share of face value of र 10/- each. The Directors earlier declared first interim dividend of 25% - र 2.5/- per share of face value of र 10/- each and was paid on 05 March 2019. The Directors do not recommend any final dividend for the year 2018-19.

3. SHARE CAPITAL

Your Company has increased its authorised share capital from र 15 Crores to र 30 Crores. The paid up capital has doubled from र 12.07 Crores to ##Rs## 24.14 Crores, due to issue of fully paid Bonus Shares in the ratio of 1:1.

4. HIGHLIGHTS OF THE COMPANY'S OPERATIONAL PERFORMANCE

4.1 The Company has recorded overall Revenue, which crosses र 900 crores.

4.2 For the first time in the history of the Company. PBT crossed the significant milestone of र 100 crores. 4.3 The Company has recorded PAT which stands at र 81 crores.

4.4 The Company continues to be a net foreign exchange earner. The net foreign exchange earnings during the current year were र 277.30 crores.

4.5 The Company has retained its ISO 9001 and TS 16949 Certification for its Quality Management.

4.6 The increase in domestic sales was 73% and increase in export sales was 30%.

4.7 Overall sales has marked a growth rate of 48%

4.8 The capital expenditure during the year was र 289.17 crores. Forgings and machining capacity has been substantially increased in line with customer demand. The company also produces green energy in its solar and wind farms.

4.9 The Company has acquired 100 % stake in DVS Industries (Private) Ltd and hence, DVS Industries has become a wholly owned subsidiary company.

5. INDIAN ACCOUNTING STANDARD ( IND AS) IFRS CONVERGED STANDARDS

Pursuant to the notification of the Companies ( Indian Accounting Standard) Rules, 2015 by the Ministry of Corporate Affairs ( MCA) on 16 February 2015, the company has adopted Indian Accounting standards ( IND AS ).

6. EXPENSES MADE MORE THAN 10 % OF THE TURNOVER

Raw Material ` 442.89 Crores (48.15%)
Personnel ` 87.49 Crores (9.51%)

7. MANAGEMENT DISCUSSION AND ANALYSIS : GLOBAL SCENE

1. After strong growth in 2017 and early 2018, global economic activity slowed notably in the second half of last year, reflecting a confluence of factors affecting major economics. China's growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The euro area aconomy lost more momentum than expected as consumer and business confidence weakened and car production in Geramany was disrupted by the introduction of new emission standards; investment dropped in Italy as soverign spreads widened; and external demand, especially from emerging Asia, softened. Elsewhere, natural disasters hurt activity in Japan.

2. Conditions have eased in 2019 as the US Federal Reserve signaled a more accommodative monetary policy stance and markets became more optimistic about a US-China trade deal, but they remain slightly more restrictive than in the fall.

3. Global growth in 2019 is expected to slow to 2.6%, reflecting weaker-than-expected trade and investment at the start of the year. Growth is projected to gradually rise to 2.8% by 2021, predicated on continued benign global financing conditions and a modest recovery in emerging market and developing economies.

4. In the United States, growth is expected to decline to 2.3% in 2019 and soften further to 1.9% in 2020 with the unwinding of fiscal stimulus.

5. Growth in the Euro area is set to moderate from 1.8% in 2018 to 1.3%% in 2019 and recover to1.5% in 2020. Although growth is expected to recover in the first half of 2019 as some of the temporary factors that held activity back dissipate, carryover from the weakness in the second half of 2018 is expected to hold the 2019 growth rate down.

6. Japan's economy is set to grow by 1% in 2019. This revision mainly reflects additional fiscal support this year, including measures to mitigate the effects of the planned consumption of tax rate increase in October 2019. Growth is projected to moderate to 0.5% in 2020.

7. Economic growth in China, despite fiscal stimulus and no further increase in tariffs from the United States relative to those in force as of September 2018, is projected to slow on an annualized basis in 2019 and 2020. This reflects weaker underlying growth in 2018, especially in the second half and the impact of lingering trade tensions with the United States. The projection for 2019 is slightly stronger reflecting the revised assumption on United States tariffs on Chinese exports while the projection for 2020 is slightly weaker, as the underlying momentum in activity is more subdued.

8. In India, growth is projected to pick up to 7.3% in 2019 and 7.5% in 2020, supported by the continued recovery of investment and robust consumption amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy. Nevertheless, reflecting the recent revision to the national account statistics that indicated somewhat softer underlying momentum, growth forecasts have been revised downward compared with the October 2018 World Economic Outlook by 0.1% point for 2019 and 0.2% point for 2020, respectively.

9. The Dow Jones Industrial Average (DJIA) has increased by approximately 7 because US stock markets are seen as a haven for investment in a sea of gloom.

10. Commodities – The Dow Jones Commodity Index (DJCI) has come down 2%.

11. As a result of these developments, global growth is now projected to be 2.6% in 2019 before gradually rising to 2.8 – 3% thereafter. The slowdown reflects weaker-than-expected trade and investments at the start of the year. Growth in 2020 and beyond is predicted on continued benign global financing conditions and a modest recovery in emerging market and developing economies.

INDIA

12. ndia's GDP is estimated to have increased 7.2% in F18 and 7% in F19. India's economy is projected to grow at 7.1% in F20 on the back of strong domestic consumption and investment.

13. During F18 the automotive industry posted growth rates of approximately 0.5% in the car segment and 16% in the CV segment.

14. Steel prices have increased by about 4% compared to the lows in the previous year.

15. The INR ended the year higher by approximately 5.75%, ending the year at a level of र 69.66 per USD. Please refer graph below. Further weakening of the INR is anticipated. However, if FDI inflows are moderate, the pressure on the INR will be relieved.

M M FORGINGS – Achievements

16. The following were important developments witnessed during the year :

• ?Domestic sales crossed record र 420 crore mark!

• ?Export sales crossed record र 460 crore mark!

• ?Total forging sales crossed record र 880 crore mark!

• ?Overall sales reached record of र 919 crore mark!

• ?Record production to 64,000 Tons!

• ?Adding to the volume of existing parts, were the new parts which were developed in the last 2 years.

• ?The company has posted a huge growth of 73% in domestic sales by the development of new parts. • ?Export sales also grew by 30%.

• ?Changes in steel prices which are in line with international markets are generally being passed on to customers as is the industry practice.

• ?We are focusing on capacity utilisation, to take advantage of the production capacities created in the last 3 years.

Key financial ratios :
Debtors Turnover : 82 days
Inventory Turnover : 4.52
Interest Coverage Ratio : 6.63
Current Ratio : 1.85
Debt Equity Ratio : 1.04
Operating Profit Margin (%) : 11.80%
Net Profit Margin (%) : 8.84%

17. As highlighted in the Directors' Report, Return On Net Worth is 19.03% and Return On Capital Employed is 15.70% . Total Outside Liabilities to Net Worth stands at 1.76.

18. The details of segment-wise sales distribution are provided below:

Human Resources and Industrial Relations

19. Your company continues to focus on the development of its human resources to improve its performance. The company currently has approximately 2064 employees. It is their invaluable contribution that has primarily resulted in your company's position of strength in the industry.

20. Focus on a safe working atmosphere, constantly evolving systems for recognition and reward, consistent communication and imparting skills and training – all these focused on meeting customer needs, characterise the HR development of the Company.

21. Every year, each plant of the Company celebrates ‘Founder's Day' in a family atmosphere with all employees and their household members.

Health, Safety and Environment

22. The Company follows a policy of zero tolerance towards accidents. Wherever possible, visible controls and fail-safe systems are provided to ensure prevention of accidents. Regular communication, periodic reviews of practices and training play a vital role in maintaining safety standards.

23. The Company ensures compliance with all pollution control regulations. Adequate pollution control equipments have been installed to treat effluents and to control air pollution.

Risk Management

24. The Company is a leading manufacturer of automotive components. Automotive industry is subjected to cyclical variations in performance and is very sensitive to policy changes. The market is very competitive. Prices of raw materials change based on supply and demand. Margins remain under constant pressure. Any steep reduction in off-take exposes the Company to high fixed costs.

25. A considerable portion of the customers of the Company are situated outside of India. Hence, demand for the Company's product is subject to the health of the global economy.

26. The Company has spread its risks by increasing the geographic spread of its customer base. The Company proposes to improve capacity utilization in its existing facilities. Working capital management will receive high priority.

M M FORGINGS – forging ahead

27. Our goals in the coming months:

Focus on improving sales in keeping with market conditions.

Increase the production capacity to 1,10,000 Tons.

Focus on cost reduction continuously - particularly on reducing energy consumption and improving productivity. Enhance IT systems with the continued development of the ERP system in place.

Reduce the impact on the environment.

Sources :

1. IMF World Economic Output

2. The Economist

8. TRANSFER TO RESERVE

Transfer to General Reserve - र 67 Crores

9. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The company has made advance to the tune of र 84.05 Crores to its Subsidiary Company, DVS Industries Private Limited, repayable at prevailing rates.

The details of the investments made by the company are given in the notes to the financial statements. 10. DIRECTORS

There has been no change in the constitution of Board of Directors during the year under review - the structure of the Board remains the same.

Both Shri. Vidyashankar Krishnan, Vice Chairman and Managing Director and Shri. K Venkatramanan, Jt. Managing Director were re-appointed for a period of five years with effect from 1 September 2018. Shri. N Srinivasan, Shri. V Vaidyanathan and Shri. A. Gopalakrishnan, were re appointed for a period of 5 years with effect from 01 April 2019.

11. RETIRE BY ROTATION

Shri. Vidyashankar Krishnan will retire by rotation and being eligible has offered himself for re-appointment.

12. DETAILS OF DIRECTORS OR KMP RESIGNED DURING THE YEAR – NIL

13. BOARD AND COMMITTEE MEETING DATES

Details are provided in Annexure III of this Report.

14. DETAILS OF RECOMMENDATIONS OF AUDIT COMMITTEE WHICH WERE NOT ACCEPTED BY THE BOARD ALONG WITH REASONS – None

13. RISK MANAGEMENT

Your Company has implemented a mechanism for risk management and has formulated a Risk Management Policy. The Policy provides for identification of risks and mitigation measures. The Audit Committee is informed on the risk assessment and minimizations mechanism adopted by the Company.

14. RELATED PARTY TRANSACTION

The Company has formulated a policy on related party transactions and the same is uploaded on the Company's website, http://www.mmforgings.com/financials

All Related Party transactions that were entered into by the Company during the financial year 2018-19, were in compliance of Section 188 of the Companies Act, 2013 and the Rules framed thereunder. There are no "Material" contracts or arrangement or transactions at arm's length basis.

All Related Party transactions were placed before the Audit Committee for their prior approval in accordance with the requirements of the SEBI LODR. The transactions entered into pursuant to such approval are placed periodically before the Audit Committee for its review.

There are no materially significant Related Party transactions made by the Company with Promoters, Directors, and Key Managerial Personnel which may have a potential conflict with the interest of the Company at large.

For related party transactions, refer Annexure 3, under the head ‘Disclosures'

15. CORPORATE SOCIAL RESPONSIBILITY

A Board Level Committee of CSR has been constituted and the Board has adopted a CSR Policy as recommended by the Committee. The thrust areas of CSR Policy are Eradicating Hunger and Poverty, Education, Combating Diseases and Social Business Projects.

Your Company has fulfilled its obligation towards CSR, by spending a sum of र 137.59 Lakhs during the year.

Annual report on CSR has been provided in Annexure III of this Report.

16. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

In terms of provision of section 178 of the Companies Act, 2013 read with Rules prescribed, a policy for the Directors, KMP and other employees has been adopted by the Board of Directors of the Company analyzing the criteria for determining qualifications, positive attributes and independence of a Director. The said Policy is provided in Company's website link http://www.mmforgings.com/financials.

17. PARTICULARS OF EMPLOYEES

The information required under the rules prescribed, has been given in the annexure appended hereto and forms part of this Report.

18. PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT RULES :

18.1 The ratio of remuneration of each Director to the median remuneration of the employees:

Name Ratio
Shri. Srinivasan. N 3.05 : 1
Shri. Vaidyanathan. V 1.63 : 1
Shri. A.Gopalakrishnan 1.22 : 1
Ms. Kavitha Vijay 1.22 : 1
Shri. Vidyashankar Krishnan 234.00 : 1
Shri. K.Venkatramanan 233.83 : 1

For this purpose, sitting fees paid to the Directors have not been considered as remuneration.

18.2 Percentage increase in remuneration of each Director, KMP, in the financial year:

Name % Increase
Shri. Srinivasan. N 1.92 %
Shri. Vaidyanathan. V -4.17 %
Shri. A.Gopalakrishnan -
Ms. Kavitha Vijay -
Shri. Vidyashankar Krishnan 34.45 %
Shri. K.Venkatramanan 7.95 %
Smt. J.Sumathi 7.95 %
Shri R.Venkatakrishnan 1.98 %

18.3 Percentage increase in median remuneration of employees is 64.60% in the financial year 2018-19.

18.4 The number of permanent employees on the rolls of Company : 2,064

18.5 Explanation of relationship between average increase in remuneration and company performance : PAT - ( last year) - र 6,850.56 Lakhs; PAT - ( this year) - र 8,135.07 Lakhs.

Increase 18.75% against which, the average increase in remuneration is 34%.

18.6 Comparison of remuneration of each KMP against performance of company

Name Designation CTC % Increase PAT ##Rs## in Lakhs % in PAT
in `
Vidyashankar Krishnan CEO 57,509,798 31.08
J.Sumathi Company Secretary 1,134,894 7.95 8,135.04 18.75
R.Venkatakrishnan CFO 1,601,283 1.98

18.7 Variation in market cap/net worth of company:

Date Issued Capital Closing market Price per share in ` EPS PE Ratio Market Capitalisation
(Shares) ` in Crores
31.03.2018 12,070,400 1038 56.76 18.29 1,252.90
31.03.2019 12,070,400 1,038.00 56.76 18.29 1,252.91
31.03.2019 (post bonus issue) 24,140,800 544.00 33.73 16.13 1,313.26
Increase / (Decrease) (post bonus issue) 12,070,400 -494 -23.03 -2.16 60.35
% of Increase / (Decrease) (post bonus issue) 100% -47.59% -40.57% -11.81% 4.82%

18.8 Justification of increase in managerial remuneration with that of increase in remuneration of other employees.

Average Increase in Remuneration for employees other than Directors and KMP is 35.90%. Average Increase in Remuneration for KMP and Senior Management is 31.10%.

18.9 Key parameters for any variable remuneration of Directors:

Directors are paid Commission. However, the overall managerial remuneration payable is subject to the provisions of the Companies Act, 2013.

18.10 Ratio of remuneration of highest paid Director to other employees who gets remuneration more than highest paid Director. – NOT APPLICABLE.

18.11 Is remuneration is as per remuneration policy of the Company: YES.

19 SIGNIFICANT MATERIAL ORDERS PASSED BY THE REGULATIONS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE: Not applicable.

20 MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAS OCCURRED SINCE 31.03.2019 TILL THE DATE OF THE REPORT:

Not applicable

21 DIRECTORS RESPONSIBILITY STATEMENT:

The Directors have fulfilled their responsibility for the preparation of the accompanying financial statements by taking all reasonable steps to ensure that -

21.1 In the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures;

21.2 The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31 March 2019 and of the profit or loss of the company for that period ended on that date;

21.3 The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

21.4 The Directors had prepared the annual accounts on a going concern basis.

21.5 The Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

21.6 The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

22 ESTABLISHMENT OF VIGIL MECHANISM

The Company has in place a vigil mechanism pursuant to which a Whistle Blower Policy has been in vogue. The Whistle Blower Policy covering all employees and Directors is hosted on the Company's web, http://www.mmforgings.com/financials.

A high level Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.

23 ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Company had laid down Internal Financial Controls and such internal financial controls are adequate with reference to the Financial Statements and were operating effectively.

It also ensures the orderly efficient conduct of its business, including adherence to Company's policies, the safe guarding of its assets, the prevention and detention of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information during the year, such controls were tested and bi-material weakness in the operations were observed.

24 CORPORATE GOVERNANCE REPORT

The guidelines evolved by SEBI were applicable to the company. The company is committed to ethical management and excellence in performance. Details are provided in Annexure III.

25 ANNUAL RETURN

An extract of Annual Return as on 31 March 2019 pursuant to Section 92 (3) of the Companies Act, 2013 and forming part of the report is attached separately.

26 A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS;

1. Nomination and Remuneration Committee of the Board had prepared and sent through its Chairman draft parameterized feed back forms for evaluation of the Board, Independent Directors and Chairman.

2. Independent Directors at a meeting without anyone from the non-independent Directors and management, considered/evaluated the Board's performance, performance of the Chairman and other non-independent Directors. Their meeting was held on 16 November 2018.

3. The Board subsequently evaluated performance of the Board, the Committees and Independent Directors (without participation of the relevant Director)

4. i) Observations of board evaluation carried out for the year:

The main inputs received from the Directors, covering various aspects of the Boards functioning was with regard to adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgement, safeguarding the interest of the Company and its minority shareholders. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Non Independent Directors and Top Managerial Personnel were carried out by the Independent Directors. The Directors expressed their satisfaction with the evaluation process.

ii) Previous year's observations and actions taken - NIL

iii) Proposed actions based on current year observations - NIL

27 FAMILIARISATION OF PROGRAMME ARRANGED FOR INDEPENDENT DIRECTORS

• ?M M Forgings Limited has put in place a system to familiarise the independent Directors about the company, its products, business and the on-going events relating to the company.

• ?Independent Directors of the Company are made aware of their role, responsibilities and liabilities at the time of their appointment / re-appointment , through a formal letter of appointment, which also stipulates various terms and conditions of their engagement.

• ?They are also made aware of Company's Board and Board Committee framework, policies and procedures.

• ?As part of Board Discussions, presentations on business of the Company are made to the Directors from time to time.

• ?Important announcements and press releases for various news related to the company are forwarded to the Directors from time to time.

• ?Each member of the Board, including the independent Directors, have been given complete access to any information relating to the Company.

• ?You may also view the company website http://www.mmforgings.com/financials in this regard.

28 AUDITORS:

G R N K & Co., Chartered Accountants (FRN 016847S) have been appointed as the Statutory Auditors of the Company in the 71st Annual General Meeting held on 26 September 2017. They will hold office for a period of five years.

There is no audit qualification, reservation or adverse remark for the year under review.

29. SECRETARIAL AUDIT REPORT

Pursuant to the requirements of the Companies Act, 2013, the Company has appointed V.Shankar, Practicing Company Secretary (C.P. No. 12974) as the Secretarial Auditor for the financial year 2018-19 whose report of 28 May 2019 is attached separately to this report.

30. COST AUDITOR

Pursuant to the provisions contained in Rule 14 of the Companies ( Audit and Auditors) Rules, 2014, Shri. S. Hariharan ( CP No. 20864) has been appointed as Cost Auditor for the financial year 2019-20.

31 SUBSIDIARY COMPANY - DVS INDUSTRIES PRIVATE LIMITED

Your company has acquired 100 % majority stake in DVS Industries Private Limited for cash consideration, who is a leading manufacturer of crank shafts, automobile crank shafts and diesel engines.

With this acquisition, your company will enhance synergies between it's wide ranging capability in forgings and machining and DVS Industries' long standing expertise in machining of crankshafts.

Incorporated in 1992, DVS Industries (with the paid-up share capital currently being र 1,59,29,900/ and turn-over of `18.06 Crores in FY 2018) is a North India based player with its manufacturing unit located in Pantnagar, Uttarakhand. DVS Industries is well equipped with robust manufacturing processes, precision equipment, in house tool room inspection facilities, well trained personnel etc.

32 EXPLANATION TO AUDITOR'S REMARK

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors and Company Secretary in practice in their reports respectively. The Statutory Auditors have not reported any incident of fraud to the Audit Committee of the Company in the year under review.

33 SAFETY

Employees have been encouraged to adhere to safety in all their activities in and out of the Company premises. Safety training at all levels have been provided by the Company.

34 DEPOSITS:

The Company does not have any deposits. Fresh deposits are not being accepted by the Company.

35 ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

Disclosures as per requirements of Section 134 (3) of the Companies Act, 2013, read with the Companies (Accounts)) Rules, 2014 with respect to Energy Conservation, Technology Absorption, Research & Development and Foreign Exchange Earnings / Outgo are given in Annexure

36 DECLARATION GIVEN BY INDEPENDENT DIRECTORS:

All the Independent Directors have given the necessary declarations to the Company as required under sub section (6) of Section 149 of the Companies Act, 2013.

37 PROHIBITION AND REDRESSAL OF SEXUAL HARRASSMENT OF WOMEN AT WORK PLACE

During the year under review, pursuant to the new legislation, ‘Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace Act, 2013' introduced by the Government of India, which came into effect from 09 December 2013, the Company has framed a Policy on Prevention of Sexual Harassment at Workplace. There were no cases reported during the year under review under the said Policy.

Disclosures in relation to the Sexual Harassment of Women in work place : No. of complaints filed during the year – 0 No of complaints disposed of during the year – 0 No of complaints pending as on the end of the financial year - 0

38 ACKNOWLEDGEMENT:

Your Directors would like to express their gratitude for the cooperation and continued assistance received from Citibank N.A., DBS bank , HDFC Bank, State Bank of India, ICICI Bank and Federal Bank

Your Directors wish to record their appreciation for the exemplary services rendered by the employees of the company. The results achieved would not have been possible but for their outstanding effort.

Above all the Directors thank the shareholders for their continued confidence in the management.

For and On behalf of the Board
Place : Chennai Vidyashankar Krishnan
Date : 28 May 2019

Chairman of this meeting

(DIN 00081441)

Annexure I – to the Directors' Report:

Information in accordance with Section 134 of the Companies Act, 2013 and as per (requirement of Rule 8(3) of The Companies (Accounts) Rules, 2014) and forming part of the report of the Directors for the year 31 March 2019.

(A) CONSERVATION OF ENERGY:

1. Energy conservation methods undertaken:

1.1 Conservation of energy is a continuous process. We have spent around र 50 lakhs to improve efficiency and saving on power consumption.

1.2 Buildings are set up with natural lighting and energy efficient LED lights.

1.3 Consumption of Light Diesel Oil and Furnace Oil is closely monitored to conserve energy.

1.4 Extracting waste heat from forgings to reduce energy consumption in Heat Treatment.

2. Additional investment and proposals, if any, being implemented for the reduction in consumption of energy: Optimising energy consumption. Close monitoring of Power Consumption of Induction Billet Heaters to reduce power consumption.

3. Green Power : The Company has generated 204.95 lakh units from its Wind and 28.01 lakh units from Solar farms equivalent to approximately 18915 tons of CO2 from Wind and 2585 tons of CO2 in the year. from Solar, totalling a saving of 21,500 tons of CO2

4. Impact of measures at 1, 2 & 3 for reduction of energy consumption and consequent impact on the cost of production of goods: It is not possible to determine the figure.

2018-19 2017-18
1 ELECTRICITY
a. Purchased:
Units 7,69,99,739 6,17,27,144
Total Amount. (`) 65,54,97,733 51,01,25,424
Rate / Unit (`) 8.51 8.26
b. Own Generation:
Units 5,74,488 1,64,143
Units per ltr. 3.86 3.03
Cost / Unit (`) 20.22 21.92
2. FUEL OIL
Quantity (in ltrs) 34,21,846 26,69,009
Total amount (`) 14,18,72,470 7,86,38,729
Average Rate (`/ltr.) 41.46 29.46
3 CONSUMPTION PER UNIT OF PRODUCTION
a. Electricity Units 1215 1250
b. Fuel Oil Litres 54 54

Note: No standards are available for comparison.

(B) TECHNOLOGY ABSORPTION:RESEARCH AND DEVELOPMENT (R &D)

Specific areas in which R & D are carried out by the company:

1. R & D efforts in a manufacturing industry like ours, is an ongoing process. Continuous efforts have been taken in various areas of the manufacturing activity.

2. Benefits derived as a result of the above R & D: It has not been possible to determine the figure.

3. Future plan of action:

Continuous efforts are being put in by way of Research & Development in all the areas of manufacturing to reduce the cost of major inputs such as steel, fuel, power, etc.

4. Expenditure on R & D: Not less than र 100 lakhs though indirectly.

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

1. Efforts, in brief, made towards technology absorption, adaptation and innovation:

1.1. Continuous efforts are made on conservation of raw material by improving design and layout of dies.

1.2. The Company has upgraded its Quality Management Systems to TS 16949

2. Benefits derived as a result of the above efforts:

2.1. Reduction in raw material consumption.

2.2. With the accreditation to TS 16949 many new export customers are being developed.

2.3. Technology imported during the last 5 years: Nil

(C) FOREIGN EXCHANGE EARNINGS AND OUTGO

1 Activities relating Exports at र 46,355.02 lakhs form a significant part of the company's turnover (` 35,559.47 lakhs in 2017-18)
2 Initiatives taken to increase development of new export markets for products and services and export plan a. Vigorous efforts are taken by marketing department to locate new multinational customers in addition to the existing multinationals.
b. The Company has been consistently retaining the TS 16949 certification for its Quality Management system.
3 Total Foreign Exchange (` 3,45,46,26,005 IN 2017-18) Earned: र 4,91,14,62,532
a. Used: र 1,21,49,10,723
(` 68,15,92,660 IN 2017-18)

 

For and On behalf of the Board
Place : Chennai Vidyashankar Krishnan
Date : 28 May 2019

Chairman of this meeting

(DIN 00081441)

ANNEXURE II FORMING PART OF THE REPORT OF THE DIRECTORS

(Information as per Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules,1975 and forming part of the Report of the Directors for the year ended 31.03.2019

Sl. No Name Designation Remuneration Qualification Experience (years) Date of Joining Age Last Employment % of shares held in the Company
a) Employed throughout the year and were in receipt of remuneration at a rate of not less than 24,00,000 per annum
1 Shri Vidyashankar Krishnan Vice Chairman and Managing Director 5,75,09,798 B.E.,M.S. 29 25.06.1990 53 Nil 11.27%
DIN: 00081441
2 Shri. K.Venkatramanan Jt. Managing Director 5,74,67,437 B.E. 27 24.01.1992 49 Nil 10.71%
DIN : 00823317
b) Employed for a part of the year and were in receipt of remuneration at a rate of not less than 8,50,000 per month None

Note:

1. Remuneration as shown above includes salary,commission,employer's contribution to Provident Fund and value of perquisites together with other allowances.

Form AOC – 2

(Pursuant to clause (h) of sub –section (3) of section 134 of the Act and Rule 8 (2 ) of the Companies ( Accounts) Rules, 2014)

Form for disclosure of particulars of contracts / arrangements entered into by the company with related parties referred to in sub-section 91) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis - NIL

1.1 Name (s) of the related party and nature of relationship

1.2 Nature of contracts/ arrangements/ transaction

1.3 Duration of the contracts / arrangements/ transactions

1.4 Salient terms of the contracts or arrangements or transactions including the value, if any

1.5 Justification for entering into such contracts or arrangements or transactions

1.6 Date (s) of approval by the Board

1.7 Amount paid as advances , if any:

1.8 Date on which the special resolution was passed in general meeting as required under first proviso to section 188.

2. Details of material contracts or arrangements or transactions not at arm's length basis - NIL

2.1 Name (s) of the related party and nature of relationship

2.2 Nature of contracts/ arrangements/ transaction

2.3 Duration of the contracts / arrangements/ transactions

2.4 Salient terms of the contracts or arrangements or transactions including the value, if any

2.5 Date (s) of approval by the Board

2.6 Amount paid as advances , if any:

In terms of our Report of even date
For GRNK & Co. Vidyashankar Krishnan V.Vaidyanathan
Chartered Accountants

Chairman of this Meeting -

Director

FRN 016847S

Vice Chairman and Managing Director

(DIN : 00081792)
(DIN : 00081441)
G. R. Naresh Kumar Kavitha Vijay J.Sumathi
Proprietor

Director

Company Secretary

Membership no. 215577 (DIN : 01047261)
Place : Chennai R.Venkatakrishnan
Date : 28 May 2019

Chief Financial Officer

   

M M Forgings Ltd Company Background

N SrinivasanVidyashankar Krishnan
Incorporation Year1946
Registered OfficeSVK Tower A/24/25 Guindy,Thiru Vi Ka Industrial Estate
Chennai,Tamil Nadu-600032
Telephone91-44-71601000,Managing Director
Fax91-44-71601010
Company SecretaryJ Sumathi
AuditorGRNK & Co
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarCameo Corporate Services Ltd
Subramanian Building,1ST Floor No 1,Club House Road,Chennai - 600002

M M Forgings Ltd Company Management

Director NameDirector DesignationYear
N Srinivasan Chairman & Independent Directo 2019
V Vaidyanathan Independent Director 2019
Vidyashankar Krishnan Vice Chairman & M.D. 2019
K Venkatramanan Joint Managing Director 2019
J Sumathi Company Secretary 2019
A Gopalakrishnan Independent Director 2019
Kavitha Vijay Independent Director 2019

M M Forgings Ltd Listing Information

Listing Information
BSESMALLCA
BSEALLCAP
INDUSTRIAL

M M Forgings Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Steel Forgings MT 000887.3691
Other Operating Revenue NA 00016.5529

Contact us